Lenders counter Kingfisher CFO's claim on rights

Lenders to Kingfisher have a contrasting opinion to offer to Kingfisher CFO Ravi Nedungadi’s comment that some bank treasury heads are keen to subscribe to its proposed rights share issue to average the cost of their holdings.

“If we indeed wanted to do so, we could have purchased it from the secondary market rather than waiting for rights issue to happen,” said a bank official.

Less than a year ago, lenders converted a part of Kingfisher Airline’s loan— around Rs 1,300 crore — into equity. The shares were allocated at Rs 64, which are now being traded in the range of Rs 18-21.

Lenders, which jointly hold 23% in the airline, had to suffer a mark-to-market hit on their treasury portfolio.